| A. Control
Activities / Information and Communication |
| Yes |
N/A |
No |
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1. Is there a formal plan of organization
under which responsibilities for closing the general statements and financial statement
worksheets are clearly defined? |
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2. Is there a formal schedule with target
dates for completing tasks associated with closing the general ledger and preparing
financial statement worksheets? |
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3. Are policies and procedures established
concerning year-end cut-off of accounting transactions? |
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4. Does the agency maintain documentation
of written procedures covering the recording of transactions ? |
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5. Does this documentation contain a chart
of accounts explaining what items are charged to each line account?
Do relevant employees have access to this information? |
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6. Does the agency maintain and follow
procedures for record filing, retention, and disposition? |
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7. Is it required that trial balances,
adjustments and supporting workpapers be maintained to support the process of closing the
general ledger and preparing financial statements and financial statement worksheets? |
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8. Is certification required from operating
units that information submitted for the preparation of the financial statements is
correct? |
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9. Is informative disclosure required in
the financial statements and the accompanying notes as follows: |
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a. Requiring the accumulation of
information concerning commitments? |
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b. Requiring the accumulation of
information concerning contingencies? |
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c. Requiring the accumulation of
information concerning related party transactions? |
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d. Requiring the accumulation of
information concerning accounting principles? |
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e. Requiring the accumulation of
information concerning fund classifications? |
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f. Requiring the accumulation of
information concerning subsequent events? |
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g. Requiring the accumulation of
information concerning other accounting disclosures? (CAFR footnote
worksheets for the State reporting entity.) |
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10. Are investments reconciled to control
accounts at year-end? |
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11. Are intra-agency transfers reconciled
at year-end? |
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12. Are intra-agency interfund receivables
and payables reconciled at year-end? |
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13. Are amounts designated for subsequent
years' expenditure reconciled to budget authorizations? |
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14. Are beginning fund balances or retained
earnings reconciled to amounts reported in prior years? |
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15. Are financial statements (or financial
statement worksheets) reconciled to the general ledger before being transmitted to the
State Controller? |
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16. Are financial statements (or financial
statement worksheets) reviewed by the chief financial officer for accuracy and
consistency? |
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17. Are the following duties generally
performed by different people: |
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a. Preparing and reviewing the financial
statements? |
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b. Preparing and reviewing journal
entries? |
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c. Accumulation of accounting
information (inventories, estimates, etc.) and custody of related assets? |
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d. Preparing and reviewing worksheets
and schedules supporting the accounting information? |
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e. Performing and reviewing
reconciliations? |
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18. Are worksheets and
schedules attached to journal entry accounting code sheets and are they
secured in a safe location? |
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19. Do only authorized persons review
departmental budgets? |
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20. Is a knowledgeable individual assigned
the responsibility to supervise the conversion from budget (cash) basis to GAAP basis of
accounting? |
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21. Are reconciliations of
subsidiary ledgers to control accounts performed and reviewed by a
responsible person? |
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22. Are journal entries
approved, including a review of supporting documentation? |
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23. Are transactions
subsequent to the balance sheet date reviewed for proper classification? |
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24. Are revenue accounts
reviewed to identify possible deferred revenue? |
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25. Are investment earning calculations
and accruals reviewed at year-end? |
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26. Are fiscal agent statements reviewed
for proper presentation and reconciled to the agency's records? |
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27. Are accumulated leave records reviewed
at year-end? |
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28. Are capital asset inventory worksheets
reviewed at year-end? |
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29. Are accrual transactions reviewed to
determine that expenditure or revenue recognition was proper? |
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30. Are retained earnings or fund balances
reviewed for restrictions/reservations at year-end? |
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31. Are bank reconciliations reviewed at
year-end? |
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32. Are fund types reviewed to verify fund
classifications? |
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33. Is the mathematical accuracy of the
financial statements verified at year-end? |
| Comments for section A. (please specify question number) |
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| B.
Monitoring |
| Yes |
N/A |
No |
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34. Are overexpenditures and other
differences between actual and budgeted amounts promptly investigated and resolved? |
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35. Has management identified accounts,
such as those requiring complex calculations or accounting estimates, which are especially
at risk of misstatement and developed policies and procedures to address those
risks timely? |
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36. Does management consider the financial
reporting impact of changes in computer programs? |
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37. Has management instituted
a process to
identify and address changes in accounting and reporting procurements? |
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38. Are only authorized
persons allowed to alter or interpret an existing accounting principle
or establish a new accounting principle? Have proposed changes
been brought to the attention of OSC? (Relates also to question
46) |
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39. Does management
spot-check transactions, records, and reconciliation to ensure
expectations are met? |
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40. Are policies and
procedures developed for changes in new systems or new ways of doing
duties? |
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41. Are budgets compared to
actual results and deviations followed up on a timely basis? |
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42. Is information (i.e.
findings, recommendations, etc.) provided by external auditors
considered and acted upon in a timely manner? |
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43. Are internal controls
subject to formal and continuous internal assessment process? |
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44. Does management
periodically evaluate the accuracy and timeliness of its information and
communicate it to appropriate personnel? |
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45. Does management review
accounting estimates at least annually (depreciation, allowance for
doubtful accounts, etc.)? |